Layoff Wave: Dell's Employee Numbers Decline for Third Consecutive Year
The number of Dell employees has continued to shrink in recent years. Over three years, this American technology giant has cut 36,000 employees from its total workforce.
According to the latest annual report, Dell now has around 97,000 employees as of 31 January 2026.
This figure is significantly lower than in February 2023, when the employee count was around 133,000. This means a decline of about 27% over three years.
The reduction has not occurred all at once but has happened gradually. Rather than sudden large-scale layoffs, the company has opted for a more “gentle” approach with phased reductions.
This marks the third consecutive year that the Texas-based PC maker has cut its workforce by around 10%.
Dell describes these reductions as part of efficiency and business restructuring measures. The company has undertaken various efforts, from reorganising employees and limiting new hires to adjusting operations.
“Throughout fiscal year 2026, we remain committed to disciplined cost management in line with our business modernisation initiatives, and continue to take several steps to reduce costs,” Dell stated.
Additionally, Dell is adjusting its investments to focus more on strategic priorities and customer needs.
Dell also highlights the increasing use of artificial intelligence (AI) and machine learning technologies across its various business lines, from IT management to software solutions and dedicated servers.
These changes are said to influence the company’s organisational structure. Dell even projects that revenue from AI-based servers will double by 2027.
Dell’s actions are driven by developments in the technology industry. Not just Dell; this year, the marketplace giant Amazon has already laid off around 16,000 employees in January 2026. This is the latest wave of layoffs from Amazon.
Then, in early March 2026, Amazon conducted further layoffs. According to internal sources, at least 100 employees were affected. They were responsible for designing robots and other tools aimed at automation, particularly in warehouses.
Jack Dorsey’s fintech company, Block, has even slashed up to half of its total workforce.
Meanwhile, the Australian software company Atlassian has also laid off around 4,000 employees, or about 10% of its total staff. Atlassian is the maker of several popular work collaboration platforms, such as Jira, Confluence, and Trello.
The cloud services provider Oracle is also reportedly considering cutting tens of thousands of employees amid surging AI expenditures and increasing financial pressures.
In addition to layoffs, Oracle has implemented a hiring freeze, particularly for its cloud division. This information emerged in the latest report released by technology and business media outlet Bloomberg.